a. Does this production function have constant returns to scale? describe.

b. What is the per-worker production function, y = f(k)?

c. Assume that neither country experiences population growth or technological progress and that 5 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country

B saves 20 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker for each country. Then find the steady-state levels of income per worker and consumption per worker.

Related Questions in Microeconomics

Question: Describe the Sydney entrepreneur ecosystem by identifying each component and providing a list and one-sentence description of players in each component. Within the category of investors or startups there are to ...

1. Firms that had virtual monopolies, that is control over at least 80% of industry production, because of control over an essential resource include all of the following except the A) National Football League in the 195 ...

ASSIGNMENTS Legal and ethical norms in business must be considered to support the aims of research, such as verification of knowledge, truth, and avoidance of error. Business ethics have become of paramount concern and a ...

Discussion Question Summation Please respond to the following: • Reflecting back on everything you have learned in this course, discuss the single most important lesson any entrepreneur should apply in order to be succes ...

Social Institutions Assignment Preparation: Review the module five reading/lectures Homework Activity: Consider the ways in which the major social institutions explored in this module affect the process of socialization. ...

KEY INFORMATION Using the readings supplied, critically argue in support of a single one of the following interventions to improve housing affordability: 1. Restricting credit to acquire property (e.g. tax added to mortg ...

https://www.youtube.com/watch?v=KGSID_Uyw7w What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

4,153,160 Questions Asked

13,132 Experts

2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses,
Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.